BUS 205 Discussion - McCormick Manufacturing is located in Fulton

Discussion:

Discuss the following case scenario:

McCormick Manufacturing is located in Fulton, New York, and is a New York State Corporation. The sales territory covers all of the Northeast; Maine, Vermont, New Hampshire, New York, Delaware, New Jersey, Rhode Island, Pennsylvania, , and Connecticut.

Currently, six sales associates live in Maine and conduct business in that state. They have lived in this state on the average of eight years. All products are shipped from the plant in Fulton to Maine. McCormick Manufacturing does not keep merchandise in Maine and does not make deliveries of goods in intrastate commerce originating from the state of Maine.

Each sales associate makes on average commissions each year totaling more than $45,000 and McCormick Manufacturing reimburses them for all work related expenses such as mileage, meals, etc. Prices, terms, and acceptance or rejection of all orders are established through the Sales and Distribution department at Fulton Plant. Sales associates do not have authority to make contracts or collections.

The state of Maine claimed that McCormick Manufacturing did not pay Maine’s state unemployment insurance tax on its Maine sales associates.

Issue: Did McCormick Manufacturing’s activities in Maine make it subject to personal jurisdiction in Maine courts?

Discuss:

1. What other information should be asked regarding this case? Why? Explain and Discuss
2. Discuss one case similar to this that has been settled and could serve as precedence when determining the outcome of this case. Summarize the case and discuss how this case is similar and how is it different. Copy a URL link to this case if you are using an Internet resource.
3. In your opinion what would be the likely outcome of this case? Is this case subject to personal jurisdiction? Discuss do you agree with your classmates? Why or why not…discuss